Smartphones with GPS killing PNDs?

Handset Navigation Poised to Threaten Personal Navigation Device Market

SCOTTSDALE, Ariz., June 25, 2007 - 2007 is shaping up to be the year that mapping and navigation applications truly arrive on mobile handsets, reports In-Stat (http://www.in-stat.com). For approximately US$10 per month, handset navigation offers similar, if not superior, functionality to Personal Navigation Devices (PNDs), at a lower price, the high-tech market research firm says.

Mobile phone operators now have the ability to market a downloadable navigation application that is just as good as, if not better, than personal navigation devices (PNDs). As a result, handset-based mapping and navigation applications could cause a major change in the overall navigation market, which is now dominated by relatively expensive standalone devices, the high-tech market research firm says.

“Unlike MP3 players and digital cameras, handset-based navigation applications provide the only low-cost alternative product in a market of growing popularity,” says David Chamberlain, In-Stat analyst. “The value proposition for handset navigation applications is very strong compared with that of PNDs and, in some ways, the functionality is superior.”

“With a clear, targeted business strategy that focuses on capturing potential PND buyers, wireless service providers have an opportunity to capture market share from PND manufacturers,” says Stephanie Ethier, In-Stat analyst.

Recent research by In-Stat found the following:

• The market for PNDs will reach 56 million units worldwide by 2011, up from 14 million in 2006.
  
• The total number of mapping and navigation mobile phone subscribers could exceed 70 million worldwide by 2012.
  
• Market drivers include falling price points, enhanced features, stronger consumer awareness of PNDs, and increased marketing and promotion by leading PND manufacturers.
  
• In 2006, PND manufacturers significantly reduced prices, with entry models priced under $200.
  
• Cellular operators whose service is based on CDMA (and iDEN) have an advantage over other mobile operators in nearly every region of the world, largely because of the A-GPS technology originally driven by mandates to support E911 services.
  
• In-Stat surveys of US subscribers find navigation applications have a strong ability to draw subscribers from other operators and keep them loyal.
  

Recent In-Stat research, Personal Navigation Devices: Worldwide Shipment Growth to Slow as Handset Navigation Arrives (#IN0703431ID), covers the worldwide market for Personal Navigation Devices (PNDs).